GoDaddy Profit Rises 24% as Airo AI Bookings Run Rate Tops $100 Million

GoDaddy said its Airo AI website product has topped a $100 million annualized bookings run rate, more than double the $50 million it disclosed a quarter earlier, as third-quarter profit rose 24% on 6% revenue growth, according to its earnings release filed with an 8-K on Thursday.

The web services company also said it expects to finish 2026 toward the higher end of its revenue range of $5.215 billion to $5.255 billion, and reaffirmed its targets for a normalized EBITDA margin above 33% and free cash flow of about $1.8 billion.

"Our AI transformation is gaining momentum, and this quarter Airo hit an annualized bookings run rate of over $100 million and began incrementally contributing to our bookings growth," CEO Aman Bhutani said in the release.

Margins widen

Total revenue rose 6% to $1.34 billion from $1.27 billion a year earlier, on both a reported and constant-currency basis. Bookings also grew 6% to $1.43 billion.

Operating income climbed 22% to $362.5 million, lifting the operating margin to 27.0% from 23.4%. Net income rose 24% to $261.8 million, or $2.08 per diluted share, compared with $210.5 million, or $1.51, a year earlier.

Normalized EBITDA, the company's preferred non-GAAP profit gauge, increased 10% to $449.3 million, a 33.5% margin. Free cash flow grew 9% to $480.8 million.

Applications lead the way

GoDaddy's Applications and Commerce segment, which includes Airo, grew revenue 9% to $524.3 million, while its larger Core Platform segment rose 4% to $817.5 million. Segment EBITDA margin for Applications and Commerce widened to 46.9% from 45.7%.

For the full year, GoDaddy expects Applications and Commerce revenue growth of about 10% and Core Platform growth of about 4%.

The company said it expanded its developer platform with APIs for hosting, professional email and commerce designed for developers and AI agents. Total customers stood at 20.5 million, up 40,000 during the quarter, and average revenue per user rose 6.8% to $253.

By the numbers

• Revenue: $1.34 billion, up 6%
• Net income: $261.8 million, up 24%
• Diluted EPS: $2.08, vs. $1.51
• Normalized EBITDA margin: 33.5%, vs. 32.3%
• Annualized recurring revenue: $4.51 billion, up 5.1%

Shrinking share count

GoDaddy has bought back 15.7 million shares for $1.4 billion so far this year through Oct. 26, which it said amounts to a 12% gross reduction in fully diluted shares outstanding since the start of the year.

"We delivered solid revenue growth, expanded profitability and strong free cash flow," CFO Mark McCaffrey said, adding that the results support continued shareholder returns.

The company ended September with $1.1 billion of cash, $3.8 billion of debt and net debt of $2.7 billion. It plans an in-person Investor Night on Dec. 1 at its Tempe, Arizona, headquarters, where it said leaders will refresh select financial targets.

Sources

1. GoDaddy Form 8-K with third-quarter 2026 earnings release (Exhibit 99), filed Oct. 29, 2026 (accession 0001609711-26-000117)

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